THQ Says Wells Fargo Declared Default On Credit Facility

In the company's 10-Q for the September quarter, filed today, THQ noted that on November 7 it was informed that Wells Fargo had declared an "event of default," noting that THQ had effectively drawn down more cash on its credit facility with the bank than can be supported by the company's financial structure based on a formula laid out under THQ's lending agreement with Wells.

"We are currently in discussions with Wells Fargo regarding the asserted event of default and believe that we will reach an agreement with Wells Fargo with respect to such default; however, there can be no assurance that we will achieve an agreement," the company said.

Last week, the company said it will delay the release of at least three pending games, and noted that it was seeking additional capital.

THQ shares today rose 3 cents to $1.19; since the company's announcement last week, the stock is down 61%.